MONEY MASTER

Singapore’s central bank is likely to  keep its monetary policy unchanged  this week, taking a cautious stance as it monitors the impact of looming U.S. tariffs on growth. Survey Forecasts 14 of 19 economists  in a Bloomberg poll expect the Monetary Authority of Singapore (MAS) to hold policy steady. 5 analysts , including Goldman Sachs and Bank of America, predict another easing. The MAS, which manages policy via the exchange rate instead of interest rates, eased twice earlier this year to cushion against global tariff shocks. Why Hold Policy Now? Economic Resilience:  Preliminary data showed Singapore avoided a technical recession in Q2, with growth driven by manufacturing, services exports, and construction. Core Inflation:  At 0.6% in June, price pressures remain subdued, supporting a wait-and-see approach. Stable Outlook:  Economists like Maybank’s Chua Hak Bin expect no further moves this year, citing a resilient economy and “benign but stabilising” i...

Key Takeaway: Global shares slipped slightly Monday as the US dollar and bond yields hovered near multi-month highs , reflecting expectations of prolonged high interest rates from the Federal Reserve. Investors are also eyeing Nvidia's earnings release later this week. Market Highlights 1. US Dollar and Treasury Yields Dollar Index: Steady at 106.69 , near its one-year high of 107.07 last week. Treasury Yields: 10-Year Yield: 4.4256%. 2-Year Yield: 4.2823%. Federal Reserve Outlook: Futures indicate a 60% chance of a 0.25% rate cut in December, with only 75 basis points of cuts by the end of 2025 , down from earlier expectations of 100+ basis points. Fed Chair Jerome Powell suggested borrowing costs will likely stay high for longer. 2. Equity Markets Global Stocks: MSCI World Index: Down 0.1%. European STOXX 600: Fell 0.2%; major European indexes fluctuated between -0.1% and +0.2%. Nasdaq Futures: Up 0.5%, recovering from last week's five-day slide. S&P 500 Future...

Key Takeaway: The US dollar surged to its highest level in a year , fueled by Federal Reserve Chair Jerome Powell's stance against rushing rate cuts. Meanwhile, mixed Chinese economic data added complexity to the global market outlook. The dollar extended its gains on Friday, driven by rising short-term Treasury yields after Powell reaffirmed the Fed’s cautious approach to rate cuts. Rate cut expectations for December fell to 61% , down from 82.5%, reflecting concerns over sustained inflation and a strong economy. Market Highlights: US Dollar Strength: The dollar is set for a weekly gain of 1.6% against major currencies. The euro fell 1.7% for the week, hitting $1.0540 , as dovish European Central Bank (ECB) signals weighed on the single currency. Treasury Yields: The two-year Treasury yield climbed six basis points to 4.36%, its highest since July, as markets adjusted to Powell's remarks. Stock Performance: Nasdaq futures slipped 0.4%, S&P 500 futures eased 0.3%, and ...

  United Overseas Bank (UOB) expects Malaysia to revise its 2024 GDP growth target to 4.5% to 5.5% , up from the current 4% to 5% , during the upcoming Budget 2025 announcement on Oct 18 . This revision reflects the stronger-than-expected economic performance in the first half of 2024. UOB's Quarterly Global Outlook 4Q 2024 report highlighted that Malaysia's GDP growth reached 5.1% in the first half of 2024, surpassing earlier estimates. As a result, the bank raised its full-year GDP forecast to 5.4% , up from its previous prediction of 4.6% . Several key factors are driving this upward revision: Global tech cycle recovery Increased tourism activities Continued government cash aid to targeted groups The implementation of budget measures and national master plan initiatives UOB also noted that the seasonally adjusted growth rate rose to 2.9% quarter-on-quarter in the second quarter (2Q2024), marking the highest growth in two years and indicating steady recovery momentu...